Kim Weathers, CEO of Southwest Idaho Bank and Trust, has

Kim Weathers, CEO of Southwest Idaho Bank and Trust, has decided to retain the bank’s corporate jet at a time most of the bank’s competitors have sold theirs. The bank has built a reputation for being an expert in taking care of the needs of a diverse, specialized segment of customers such as cattle ranchers in Montana and western Texas as well as almond growers in California. Ms. Weathers has determined that the bank’s executives, including her, need to be able to travel to meet with her clients on short notice, and the only way to be able to do this is to retain the corporate jet.

Stock analysts, wary of the bank’s decision to retain the jet, estimated that the bank generated an additional $26,000,000 in revenue in 2019 that the bank otherwise would not have made if it hadn’t kept the jet. External accountants were able to compute the all-in cost of the jet to the company in 2019 as being $20,000,000. There is no evidence the jet was used on non-official bank business.

Is this an Agency problem? (yes or no)

Why is this or is this not an agency problem? (1-2 sentences)

Is there an agency cost involved? (yes or no)

If there is an agency cost involved, describe it, and indicate whether it is a direct or indirect cost. (1-2 sentences)

If it is an agency problem, what could be done to alleviate or prevent it? (1-2 sentences)

How Our Website Works


It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.


All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.


Next, we match up your order details with the most qualified freelance writer in your field.


Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!


Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.